- Natural gas prices surged from EUR 72/MWh to EUR 280.50/MWh in six months.
- On August 23rd, 2022, the Management Board decided to scale down operations.
- Fertilizer Production Unit reduced to 43% capacity as of August 24th, 2022.
- The company monitors raw material prices and production profitability.
Background
Due to record high prices for natural gas, the main production feedstock, Grupa Azoty Zakłady Azotowe Kędzierzyn S.A. decided to scale down the operation of its Fertilizer Production Unit. This decision was made on August 23rd, 2022, and the reduction to 43% capacity took effect on August 24th, 2022.
Impact of Geopolitical Events
Since Russia's aggression against Ukraine on February 24th, 2022, natural gas prices on European exchanges have soared to historically high levels. Over the past six months, gas prices surged from EUR 72/MWh on February 22nd, 2022, to EUR 280.50/MWh on August 23rd, 2022.
Market Conditions
Although there are no issues with the availability of gas, the current market situation, which affects the profitability of production activities, is extraordinary and beyond the control of the Grupa Azoty Group. This situation could not have been predicted.
Ongoing Monitoring
The company continuously monitors the price levels of all raw materials and commodities, as well as the profitability of its production processes. Future business decisions will be based on the results of this ongoing monitoring.
